Financial Analysis: Seal-Tight Company

Directed by the CEO of Seal-Tight Company, this research provides insight into, “How to increase revenue, reduce operating costs and beat competition?” It is prudent to assess Seal-Tight Company’s financial history between the fiscal years 2008-2012. By comparing the business against historical trends to include the net sales, net sales and net profit, expenses, and competitors’ analysis of the fiscal years 2008-2012. Methods of analysis include trend, horizontal and vertical analysis as well as a comparative statement of profit and loss of the two-competitor’s sales data:
• Average Net Sales increase of 8% 2008 to 2011 with a decrease of -4% in 2012.
• The Net Profit Margin depicts an up and down trend or growth pattern due to increased production and costs. In 2008 the Net Profit Margin is 9%, 2009 the Net Profit Margin is 7%, 2010 the Net Profit Margin is 9%, 2011 the Net Profit Margin is 6%, and in 2012 the Net Profit Margin is 7%.
•

• Competitive Analysis reflects that in 2008 the Seal-Tight Company was down by $1 million to the Superior Can Co. but in the following years the Seal-tight Company’s Net Sales grew increasingly higher.
This research indicates by increasing the number of customers, increasing average transaction size, increasing the frequency of transactions per customer, raising prices and implantation of strategic developments in technological advances will aid in their competitive advantage success.